Morningstar cuts fair value estimate for Australia's Abacus as SKG stake sale price disappoints

Abacus

20/09/2026 21:05

** Morningstar cuts fair value estimate for Australia's Abacus Group ABG.AX by 8% to A$1.10
** The diversified REIT said on Friday it will sell a 19.6% interest in Storage King Group SKG.AX for total gross proceeds of A$284.8 million
** Investment research firm calls the sale price "underwhelming"
** "High debt, soft office demand in some of its markets, and elevated leasing incentives are the primary stressors" - Morningstar
** 3 of 5 analysts rate the stock "buy" or higher, 1 "hold" and 1 "sell"; their median PT is A$1.13 – according to data compiled by LSEG 
** Stock down 31% YTD as of last close

 (Reporting by Jasmeen Ara Shaikh in Bengaluru)
 ((Jasmeenaraislam.Shaikh@thomsonreuters.com;))